The German government's Bitcoin (BTC) wallet has been emptied. The last 3,000 BTC it had were sent minutes ago to an address identified with the B2C2 exchange.

Thus, Germany has finally disposed of the 50,000 bitcoins it had seized and had been holding since January 2024. 

In the following graph, provided by Arkham Intelligence, you can see how the bitcoin holdings in the aforementioned wallet have been decreasing over time. In addition, at the bottom you can see the most recent transactions:

Bitcoin holdings in the German government wallet. Source: Arkham.

The end of BTC sales by the German government can be considered a relief for the price of the digital currency. Now, Bitcoin has one less bearish driver. Germany's bitcoin sales have led BTC to confirm a bearish trend at the beginning of July , by "breaking" the $56,000 support.

Following the news that Germany no longer has any bitcoin to sell, BTC is up above $58,000 at the time of writing.

However, the market still has to deal with the release of more than 100,000 bitcoin from the bankrupt Mt. Gox exchange .

The German government's bitcoin sales were largely "absorbed" by the money flowing into spot ETFs. This market dynamic meant that the impact on the price was not that great.

We will have to wait for the next few weeks and months to see if something similar happens and the impact of potential sales by those who have been holding onto bitcoin forcibly for around 10 years and are currently sitting on huge unrealized gains is lessened. On Bitcoin, bulls should not get too excited in the very short term. The Mt. Gox issue still needs to be neutralized. They have to settle their debts with creditors by giving them 140,000 BTC. That is a considerable selling pressure, which will be difficult to counteract in the next 3 months. After those 3 months the bullish cycle could begin that will take bitcoin to new highs.